Question 1

The continuous improvement subcycle of Kaizen costing is defined by what sequence?

Accepted Answer

A)  check-do-plan-act 
B)  do-check-plan-act 
C)  plan-do-check-act 
D)  None of these is the correct sequence. 
A)  check-do-plan-act 
B)  do-check-plan-act 
C)  plan-do-check-act 
D)  None of these is the correct sequence.

Question 2

Which of the following is NOT an objective of activity-based management?

Accepted Answer

A)  to improve decision making through better cost information 
B)  to increase the number of activities necessary to perform processes 
C)  to encourage cost reduction through continuous improvement 
D)  to increase profitability 
A)  to improve decision making through better cost information 
B)  to increase the number of activities necessary to perform processes 
C)  to encourage cost reduction through continuous improvement 
D)  to increase profitability

Question 3

Each unit of product requires 16 pounds of material.Due to scrap and rework, each unit has been averaging 18 pounds of material.The material costs $4 per pound.
-The value-added costs are

Accepted Answer

A)  $4. 
B)  $8. 
C)  $64. 
D)  $72. 
A)  $4. 
B)  $8. 
C)  $64. 
D)  $72.

Question 4

Which of the following is NOT an essential element of responsibility accounting?

Accepted Answer

A)  assigning responsibility 
B)  establishing performance measures 
C)  evaluating performance 
D)  ridiculing poor performers 
A)  assigning responsibility 
B)  establishing performance measures 
C)  evaluating performance 
D)  ridiculing poor performers

Question 5

Allende Company has developed capacity standards.Information is as follows for a value-added activity:  
- The unused capacity variance is

Accepted Answer

A)  $20,000 favorable. 
B)  $40,000 favorable. 
C)  $60,000 favorable. 
D)  There is no variance. 
A)  $20,000 favorable. 
B)  $40,000 favorable. 
C)  $60,000 favorable. 
D)  There is no variance.

Question 6

A company keeps 20 days of materials inventory on hand to avoid shutdowns due to materials shortages.Carrying costs average $4,000 per day.A competitor keeps 10 days of inventory on hand, and the competitor's carrying costs average $2,000 per day. 
-The value-added costs are

Accepted Answer

A)  $80,000. 
B)  $40,000. 
C)  $20,000. 
D)  $-0-. 
A)  $80,000. 
B)  $40,000. 
C)  $20,000. 
D)  $-0-.

Question 7

Which of the following is NOT true about assigning rewards in activity-based responsibility accounting?

Accepted Answer

A)  Rewards are assigned based on budgetary standards. 
B)  Rewards are assigned based on individual as well as team performance. 
C)  Rewards are assigned based on progress towards optimal standards. 
D)  Rewards include bonuses, profit sharing, and gainsharing. 
A)  Rewards are assigned based on budgetary standards. 
B)  Rewards are assigned based on individual as well as team performance. 
C)  Rewards are assigned based on progress towards optimal standards. 
D)  Rewards include bonuses, profit sharing, and gainsharing.

Question 8

A company has 5 days of finished goods inventory on hand to avoid stockouts.The carrying costs of the inventory average $2,500 per day.The non-value-added costs are

Accepted Answer

A)  $-0-. 
B)  500. 
C)  $2,500. 
D)  $12,500. 
A)  $-0-. 
B)  500. 
C)  $2,500. 
D)  $12,500.

Question 9

Process improvement can be defined as

Accepted Answer

A)  The performance of a process to achieve major improvements. 
B)  The adoption of new processes to meet strategic objectives. 
C)  The incremental or continual increases in the efficiency of a process. 
D)  The expression of performance measures in financial terms. 
A)  The performance of a process to achieve major improvements. 
B)  The adoption of new processes to meet strategic objectives. 
C)  The incremental or continual increases in the efficiency of a process. 
D)  The expression of performance measures in financial terms.

Question 10

Which of the following is NOT a necessary essential element of activity-based responsibility accounting?

Accepted Answer

A)  Process management requires significant group activity. 
B)  Performance evaluation employs dynamic standards. 
C)  Performance evaluation uses only financial measures. 
D)  Performance evaluation is based on optimal standards. 
A)  Process management requires significant group activity. 
B)  Performance evaluation employs dynamic standards. 
C)  Performance evaluation uses only financial measures. 
D)  Performance evaluation is based on optimal standards.

Question 11

A company has 5 days of finished goods inventory on hand to avoid stockouts.The carrying costs of the inventory average $5,000 per day.The value-added costs are

Accepted Answer

A)  $-0-. 
B)  $1,000. 
C)  $5,000. 
D)  $25,000. 
A)  $-0-. 
B)  $1,000. 
C)  $5,000. 
D)  $25,000.

Question 12

_______________ is the process of identifying, describing, and evaluating the activities an organization performs.

Accepted Answer

A)  Activity inputs 
B)  Activity analysis 
C)  Driver analysis 
D)  Value-added activities 
A)  Activity inputs 
B)  Activity analysis 
C)  Driver analysis 
D)  Value-added activities

Question 13

Allende Company has developed capacity standards.Information is as follows for a value-added activity:   
-The volume variance is

Accepted Answer

A)  $20,000 unfavorable. 
B)  $40,000 unfavorable. 
C)  $60,000 unfavorable. 
D)  There is no variance. 
A)  $20,000 unfavorable. 
B)  $40,000 unfavorable. 
C)  $60,000 unfavorable. 
D)  There is no variance.

Question 14

Which of the following is an example of a non-value-added manufacturing activity?

Accepted Answer

A)  assembly 
B)  scheduling 
C)  finishing 
D)  All of these are value-added activities. 
A)  assembly 
B)  scheduling 
C)  finishing 
D)  All of these are value-added activities.

Question 15

What is process value analysis?

Accepted Answer

Process value analysis is fundamental to

Question 16

_______________ refers to the adoption of new processes to meet strategic objectives.

Accepted Answer

A)  Process improvement 
B)  Process innovation 
C)  Process creation 
D)  Process efficiency 
A)  Process improvement 
B)  Process innovation 
C)  Process creation 
D)  Process efficiency

Question 17

Rollo Company has developed cost formulas for the drivers of the following production activities:   
-The activity levels are projected to be as follows:
 
 What is budgeted for this projected activity level?

Accepted Answer

A)  $3,504,450 
B)  $1,655,430 
C)  $295,150 
D)  $165,543 
A)  $3,504,450 
B)  $1,655,430 
C)  $295,150 
D)  $165,543

Question 18

The major source of information for the activity management system is

Accepted Answer

A)  driver analysis. 
B)  an activity-based costing system. 
C)  a performance measurement system. 
D)  product information. 
A)  driver analysis. 
B)  an activity-based costing system. 
C)  a performance measurement system. 
D)  product information.

Question 19

_______________ refer(s) to an incentive that specifically relates to sharing the gains from improvements in projects.

Accepted Answer

A)  Bonuses 
B)  Stock options 
C)  Profit sharing 
D)  Gain sharing 
A)  Bonuses 
B)  Stock options 
C)  Profit sharing 
D)  Gain sharing

Question 20

An activity output measure is

Accepted Answer

A)  the number of outputs from a process. 
B)  the cost of the activity measured. 
C)  the effort expended to identify root causes. 
D)  the number of times an activity is performed. 
A)  the number of outputs from a process. 
B)  the cost of the activity measured. 
C)  the effort expended to identify root causes. 
D)  the number of times an activity is performed.

The continuous improvement subcycle of Kaizen costing is defined by what sequence?

Which of the following is NOT an objective of activity-based management?

Each unit of product requires 16 pounds of material.Due to scrap and rework, each unit has been averaging 18 pounds of material.The material costs $4 per pound. -The value-added costs are

Which of the following is NOT an essential element of responsibility accounting?

Allende Company has developed capacity standards.Information is as follows for a value-added activity: - The unused capacity variance is

A company keeps 20 days of materials inventory on hand to avoid shutdowns due to materials shortages.Carrying costs average $4,000 per day.A competitor keeps 10 days of inventory on hand, and the competitor's carrying costs average $2,000 per day. -The value-added costs are

Which of the following is NOT true about assigning rewards in activity-based responsibility accounting?

A company has 5 days of finished goods inventory on hand to avoid stockouts.The carrying costs of the inventory average $2,500 per day.The non-value-added costs are

Process improvement can be defined as

Which of the following is NOT a necessary essential element of activity-based responsibility accounting?

A company has 5 days of finished goods inventory on hand to avoid stockouts.The carrying costs of the inventory average $5,000 per day.The value-added costs are

_______________ is the process of identifying, describing, and evaluating the activities an organization performs.

Allende Company has developed capacity standards.Information is as follows for a value-added activity: -The volume variance is

Which of the following is an example of a non-value-added manufacturing activity?

What is process value analysis?

_______________ refers to the adoption of new processes to meet strategic objectives.

Rollo Company has developed cost formulas for the drivers of the following production activities: -The activity levels are projected to be as follows: What is budgeted for this projected activity level?

The major source of information for the activity management system is

_______________ refer(s) to an incentive that specifically relates to sharing the gains from improvements in projects.

An activity output measure is

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters

Exam 12: Activity-Based Management

The continuous improvement subcycle of Kaizen costing is defined by what sequence?

Which of the following is NOT an objective of activity-based management?

Each unit of product requires 16 pounds of material.Due to scrap and rework, each unit has been averaging 18 pounds of material.The material costs $4 per pound. -The value-added costs are

Which of the following is NOT an essential element of responsibility accounting?

Allende Company has developed capacity standards.Information is as follows for a value-added activity: - The unused capacity variance is

A company keeps 20 days of materials inventory on hand to avoid shutdowns due to materials shortages.Carrying costs average $4,000 per day.A competitor keeps 10 days of inventory on hand, and the competitor's carrying costs average $2,000 per day. -The value-added costs are

Which of the following is NOT true about assigning rewards in activity-based responsibility accounting?

A company has 5 days of finished goods inventory on hand to avoid stockouts.The carrying costs of the inventory average $2,500 per day.The non-value-added costs are

Process improvement can be defined as

Which of the following is NOT a necessary essential element of activity-based responsibility accounting?

A company has 5 days of finished goods inventory on hand to avoid stockouts.The carrying costs of the inventory average $5,000 per day.The value-added costs are

_______________ is the process of identifying, describing, and evaluating the activities an organization performs.

Allende Company has developed capacity standards.Information is as follows for a value-added activity: -The volume variance is

Which of the following is an example of a non-value-added manufacturing activity?

What is process value analysis?

_______________ refers to the adoption of new processes to meet strategic objectives.

Rollo Company has developed cost formulas for the drivers of the following production activities: -The activity levels are projected to be as follows: What is budgeted for this projected activity level?

The major source of information for the activity management system is

_______________ refer(s) to an incentive that specifically relates to sharing the gains from improvements in projects.

An activity output measure is

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters